There has been rapid growth in manufacturing around the country. This development is helping to create the recovery along with a stabilization of the overall economic model. It was not accidental that this happened, and it has created a rich employment opportunity. Yet we see in the news that there is a huge skills gap and that manufactures cannot find applicants for the open jobs. The current number is 600,000 unfilled positions according to the Manufacturing Institute’s recent survey and we can all expect the number to grow in the near future.
There is more to the skills gap story and it has many facets. It may be divided into Science, Technology, Engineering & Mathematics (STEM), and the Soft Skills. STEM education is getting a lot of press and when we compare U.S. STEM education rates to the world, our ranking is dismal. Surprisingly, it is soft skills that are often described as the missing element in the job applicants. Soft skills can also be described as including the work ethic, the basic skills of writing, spelling, comprehension and the ability to work in a group environment. I will add to the list, a total overestimation, by the applicant, of their own capacity.
Deloitte Consulting LLP and the Manufacturing Institute in their 2011 survey of manufacturing job skills found that the number one reported deficiency is problem solving skills. This is not something that is easily taught in a singular class, it is an accumulation of experience and basic learning techniques.
There are many reasons for this skills gap and it is not just here in the USA.
Worldwide manufacturing has developed into a high technology field. Productivity rates are increasing and this is defined by a lower labor percentage in every product. We need the productivity rate to increase, however it does create an employment issue. On a recent trip to China I spoke to my distributor in Shanghai and he said that a similar problem exists there. There are endless unskilled workers and very few skilled employable people for the high technology manufacturers. In China, the skilled people are snapped up by the large corporations and are unavailable to the smaller businesses.
As an alternative to traditional education, many manufacturers are performing the training in house to bring the skills up for the employees who need it. Keep in mind, this method raises the value of the employee, increases wages, bonds them to the employer and everyone wins. The State of California even offers a reimbursement program to help reduce these expenses. I have used these services and it not only brings up the skills of the employees, the rigor may identify shortcomings in your own training program.
The community colleges are the primary sources for traditional retraining and when I had the opportunity to present a question to President Obama about retraining and technical skills for the unemployed, he immediately noted the important role of the community colleges.
U.S. manufacturers need to compete globally and continuously turn out world class products and production, if they are to remain viable in a world economy. Well trained, capable and flexible workers are the key to success, yet there is a shortage of this critical element. We do not want to become a third world country with a huge population of unemployable people, pulling on scant government resources and without a solid financial future. The current skills gap trend must be reversed and it starts within our own businesses, training is the key.
Roy Paulson is President of Paulson Manufacturing Corporation. www.paulsonmfg.com